Automobile Insurance Rates – What Affects The Cost Of Your Auto Insurance?

When you purchase an automobile insurance, the insurance company has to assess the amount of risk they’re undertaking by considering a variety of factors. These factors determine the likelihood that you may experience an accident or loss.

Knowing the factors that impact your automobile insurance premiums can help you lower the amount you have to pay. Not all companies use the same criteria to determine your premiums though. Yet there are common factors that influence your automobile insurance rates:

Driving Record

If you have a driving record that includes motor vehicle violations, suspensions or at-fault accidents, the price you pay for your automobile insurance may be higher. Insurance companies consider you to be a high-risk driver and thus charge you more.

Fortunately the consequence of a tainted driving record is not perpetual. Incidences that happened a long time ago are often considered less seriously, or not at all.

The Make, Model And Value Of Your Vehicle

A high performance or luxury car will almost always cost more to insure than an older vehicle. Insurers may offer discounts for vehicles with safety features, so it’s important to check with your local insurance company before purchasing your vehicle.

The cost to insure different makes and models of vehicles can also vary among insurers. Therefore you ought to check with several insurers to get the best price and coverage for your needs.

Geographic Area

The number of claims filed by policyholders in your area of residence will affect your car insurance rates. After all, your territory is where you’ll drive past almost everyday.

Gender, Age and Marital Status

Statistically, males and young adults have a higher incidence of accidents than female and more mature drivers. And if they’re married, they tend to have less accidents and lower claims rate. Thus older, married women tend to enjoy better rates than single, young men.

Vehicle Use

The more you use your vehicle, the more risk you’re exposed to. Therefore the distance you live from work (or school) may affect the cost of your insurance. Whether you use your vehicle for personal or business use may also affect your premiums.

Credit History

Some insurers will use your credit history as one of the factors in determining risk. Therefore it will be beneficial to maintain a good credit score.

Finally, the costs of your auto insurance changes as you make policy alterations. These changes may include adjustment of coverage limit, changing of deductible, relocating to a new area or adding/removing a driver from your policy.

Cheap Automobile Insurance Rates - How to Get Them

Getting cheap automobile insurance rates can be a time consuming task to say the least. Here's how to get cheap rate quotes with a reputable insurance company quickly and easily.

Cheap Automobile Insurance Rates Lesson

Yesterday I decided to check out one of those insurance sites the advertises "Cheap rates! Save up to 50% on your insurance!." This company is rated number one on some top insurance review sites. I wanted to see if they could beat the rate I'd gotten a few years back from another insurance company.

I called their "800" number, answered all the questions the agent asked me, then, anticipating that I would be saving hundreds of dollars a year on my insurance, anxiously waited for my quote. I was sorely disappointed.

The quote I received was $812 more than what I'm currently paying for my automobile insurance.

The lesson: Don't believe everything you hear or read. Check it out for yourself. The only way to know you're getting a cheap insurance rate is to get quotes from a number of different insurance companies and compare them.

Cheap Automobile Insurance Rates Online

The quickest way to get automobile rate quotes from different companies is to go to an insurance comparison website. Once there you'll spend a few minutes filling out a simple questionnaire to get multiple quotes.

Some of the better insurance comparison websites have a chat feature where you can get answers to your questions online from an insurance expert, and an "Articles" section where you can get tips and advice. (See link below.)

If you're currently insured, make sure you have your insurance policy handy so you can compare apples to apples.

Check Out the Company

After you choose an automobile insurance company you'll want to check them out to see if they're reputable and will give you good service. I recommend going to your state's department of insurance website to see how many complaints have been filed against them compared to other insurance companies.

Every company will have some complaints filed against them. You want to find out if a particular company has an unusually large number of complaints filed against them compared to other companies.

Once you take the above steps you'll know you have a cheap automobile insurance rates with a good company.

Low Cost Automobile Insurance Rates - Where to Get Them

Thanks to rising accident rates, rising repair costs, and rising medical costs automobile insurance rates have skyrocketed. Even so, there is a way to find low cost automobile insurance rates. Here's how ...

How much automobile insurance do I need?

Most states require you to have liability coverage. This insurance is divided into three categories:

1. Bodily injury liability - pays claims made against you if you injure or kill someone. It also covers family members living with you, and pays your legal fees if you're sued.

2. Property damage liability - pays claims made against you if you damage someone else's car or property.

3. Personal injury protection - pays your medical expenses and your passengers medical expenses if you're in another car or are walking.

Coverage that's not mandatory in most states but is good to have includes:

Collision coverage - pays for damage to your car caused by another car no matter who was at fault, or damage caused by any object .

Comprehensive insurance - pays for damage to your car from fire, theft, vandalism, and acts of nature (hail, wind, etc.).

Uninsured/underinsured motorist coverage - pays for you and your passenger's medical bills and any property damage caused by an uninsured, underinsured or hit-and-run driver.

Where can I get low cost automobile insurance rates?

The easiest way to find low cost automobile insurance rates is to go to an insurance comparison website. There you can get quotes from a number of insurance companies so you can compare them and get the cheapest rate.


Rates for the exact same insurance coverage can vary as much as $1,000 from one company to the next, so it pays to spend a few minutes online to get the cheapest quote you can.